Explaining Numoen with Memes
Interested in Numoen but not sure how to use it? Well let us try to explain the application and the magic of Power Tokens.
Scenario A: Prices are not moving and the market is flat.
Numoen is built on a protocol called PMMP, an automated market maker for Power Tokens. A willing user known as a liquidity provider lends out two tokens to the protocol and earns funding from users that are going long or short with Power Tokens.
As is with providing liquidity to any AMM, you make the most amount of money when prices of the two tokens you are holding stay the same.
Basically if prices are not moving, lend out your assets and earn interest!
Scenario B: Crypto is going to the moon and you want to lever up.
Everything is great! Weather is nice! You are optimistic that prices will continue to go up and want a super simple way to get leverage without the risk of liquidations. Something like a leverage token right? Well Power Tokens are the perfect antidote. They are leverage tokens with no liquidations that will square your gains.
Just hold ETH+ for instance and always have leveraged exposure to ETH.
Scenario C: Bear Market. Short Everything.
Just as things can go up, they can do down as well :(
Traders will sometimes take advantage of this kind of market by shorting a token. This is where instead of buying a token hoping the price will go up, they buy a special type of token that earns money when prices fall. The same convention applies with Power Tokens. Buy ETH- for example and you square your gains as prices fall!
Keep in mind, Numoen has no oracles dependencies. That means virtually any asset can be listed and shorted with leverage no liquidations.
Disclaimer
PMMP is a protocol for the automated liquidity provisioning of Power Tokens directly on the blockchain. The protocol has no governable parameters, no special privileges, and is non-custodial. Please understand that while the code has been audited it does not guarantee the safety of your funds. In fact, interacting with the protocol can come with substantial risks. Be aware of these risks before interacting with PMMP. A governance token should never be expected.
Learn more
Discord: https://discord.gg/6Dtc49Dt4W
Twitter — @numoen
Website — numoen.com
